Morning Market Roundup: Spain Special Treatment? Feds Stay Put, China’s Mineral Trade Challenged
- Posted on March 13, 2012 at 9:47am by
Becket Adams
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Here‘s what’s important in the financial world this morning:
EU & Spanish Leniency: The decision by finance ministers of the 17-country eurozone to give Spain some leeway on cutting this year’s deficit has already triggered demands from other European countries for more fiscal leniency. The move also signals the difficulty Europe faces in enforcing the strict spending rules it has worked out over the past two years amid renewed recession.
Spain on Monday night was given the go-ahead by eurozone finance ministers to run a deficit of 5.3 percent of gross domestic product this year – above its original target of 4.4 percent.
However, Madrid still has to cut its deficit back to 3 percent by 2013, as had been planned.
The European Union’s Economic Affairs Commissioner Olli Rehn, who is in charge of policing the bloc’s fiscal rules, said the 2012 target had to be eased because Spain’s 2011 deficit of 8.5 percent of GDP was much higher than expected and the country’s economy is also doing worse.
Fed Has Nothing to Say: Since the Federal Reserve’s policymakers last met in January, the job market has shown more muscle. Employers have hired more than a half million people. The unemployment rate is down.
The core issue the policymakers face when they meet Tuesday is whether that burst of strength will last long enough for them to soon scale back their support for the economy.
No major announcements are expected after the Fed’s one-day meeting. Private economists think the officials will note the job gains. But they expect them to repeat their plan to keep short-term interest rates at a record low until at least late 2014.
Those low rates are intended to encourage consumers and businesses to borrow and spend more. Lower yields also lead some investors to shift money out of bonds and into stocks.
China vs U.S., Japan, & EU: The Obama administration is bringing a new trade case against China that seeks to pressure Beijing to end export restrictions on key materials used to manufacture hybrid car batteries, flat-screen televisions and other high-tech goods.
The latest action, announced Tuesday, is part of President Barack Obama’s broader effort to crack down on what his administration sees as unfair trading practices by a rising economic power that have put American companies at a competitive disadvantage.
The U.S. asked the World Trade Organization to facilitate talks with China over its curtailment of exports of rare earth minerals. The U.S. is bringing the case to the WTO along with the European Union and Japan.
In Brussels, EU Trade Commissioner Karel De Gucht said China’s restrictions “hurt our producers and consumers in the EU and across the world.”
The Associated Press contributed to this report.
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asybot12
Posted on March 13, 2012 at 1:01pmHi snow just a suggestion, move, you might be one of the first ones crushed, please if you can move!
Report Post »MDDAWG
Posted on March 13, 2012 at 12:55pm“Spain on Monday night was given the go-ahead by eurozone finance ministers to run a deficit of 5.3 percent of gross domestic product this year – above its original target of 4.4 percent.”
Hummmm.
Our gross deficit as a percentage of gross domestic product in 2009 was over 10%. See: http://www.realclearmarkets.com/articles/2010/03/10/whats_gross_about_our_gross_domestic_product_98378.html
I wonder what it was in 2011. The world is trying a failing experiment in borrowing. Prepare yourselves!
Report Post »Detroit paperboy
Posted on March 13, 2012 at 11:57amHey Barack, the only entity putting American companies at a dis advantage… Is our oversized criminal federal government, you freakin idiot….
Report Post »CatB
Posted on March 13, 2012 at 10:14amLow interest rates are KILLING seniors .. I am this close to buying a home vault and storing everything I have invested in it. I wonder how low they would be with a short money supply if every senior in the country withdrew their money .. oh that’s right the fed would just print more and give it to the banks .. WE CAN‘T WIN and they CAN’T LOSE.
Report Post »Snowleopard {gallery of cat folks}
Posted on March 13, 2012 at 10:26amCatB – the feds would just print up or fabricate more money and keep overloading the system; Obama will not stop until he brings down everything across the board. This morning I have crossed swords with the progressive idiots who live in my apartment complex. They say “Obama must crush any and all people of faith who dare to speak against the machine, man is superior to a non-existent deity; the delusional followers must be cut down for the good of all humanity…”
God above this madness needs to end and soon.
I see more and more that we are going to be in the fight for our lives and our freedom worse than most can imagine and all too soon.
Report Post »barber2
Posted on March 13, 2012 at 10:52amGuess what ? The Obama administration does NOT care about useless, old folks whom the Left likes to blame for following the rules, saving, and being successful ! The Democrats are more interesting in inflaming the young, making them campaign promises, and redistributing the wealth of others ! Hey, it’s all about “winning ” – the election is all that matters to the Democrats. They plan to in ANYWAY they can. Have you noticed their most recent policies and rhetoric ?
Report Post »Diablo4965
Posted on March 13, 2012 at 10:14amBlaze would you mind pulling the“ HALFY” pic from the bottom of every article, it’s starting to drive me “HALFY”crazy. I think alot of people would agree.
Report Post »Detroit paperboy
Posted on March 13, 2012 at 11:45amI asked them to pull halfy, a month and a halfy ago….
Report Post »barber2
Posted on March 13, 2012 at 10:05amThink the EU has confused the term “ fiscal leniency” with the more correct ” fiscal insanity.” This will not end well. And our idiot Far Left Democrats are marching to the same insane drummer….
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